The Buying Process

The Buying Process

Going to contract

When you are ready to write up a contract, the next
step is to decide on the price you wish to offer the seller and under
what conditions you wish to make the offer. Common conditions of sale
are: subject to finance, a builder's report, sale of another property,
solicitor’s approval of the contract or specialist inspection or
approval.

The seller can accept your offer, reject it or counter
sign it. Counter signing usually occurs when the seller is not
satisfied with the price offered and/or conditions included and
subsequently alters them. The contract will be brought back to you for
your consideration. If you accept, you initial the seller’s alteration
and the property is under offer to you subject to any conditions that
the contract may contain. Alternatively you also have the right to
counter sign. Your sales consultant will continue negotiations between
you and the seller until you are both in agreement.

The dangers of offering too low

Once they find the property they wish to purchase many buyers are tempted to “start low” with their offer.

We understand, but would not be giving you complete service if we did not warn you of what can happen.

1.The seller could feel insulted, and become difficult to negotiate with from then on.

2.The seller may think you are a bargain hunter “having a go” without
serious intention to buy and dismiss your offer altogether.

If you are serious about purchasing the property it
is wise to make a genuine offer that reflects your serious intentions
and appreciation of the true value of the seller’s home.

Common conditions of sale

Along with the standard terms of the contract both
buyers and sellers are able to insert further terms and conditions of
sale. When writing in any special condition the key parts are who is
going to do it; what are they going to do; when are they going to do it
by; what standards will apply; what happens if it is not satisfied and
who can waive it.

Once an inserted condition has been satisfied notice will be provided to the other party usually by the solicitors involved.

A
condition can be either satisfied or waived. If you have inserted a
condition but it has not been met by the required date you can choose to
waive that condition. If the condition is neither satisfied nor waived
then the agreement will be terminated and any deposit paid by you shall
be immediately refunded.

Some common conditions of sale are:

Conditional on sale of purchaser’s property

Conditional on sale of purchaser’s property becoming unconditional

Inserting these clauses allows you to sell your
property before purchasing. Use the appropriate clause to allow you time
to sell your property or for an existing contract of sale to become
unconditional in all respects.

Conditional upon Finance

Conditional upon obtaining Solicitor’s Approval of the Contract

Conditional upon obtaining a Builder’s Report

Each of these conditions should be clearly worded and the dates for confirmation made clear.

Paying the deposit

Once all parties have signed the contract you will be asked to pay a deposit. This usually equates to 10% of the purchase price.

We can refer you to Mortgage Express who can assist you with this.

Property purchase costs

Financial fees vary greatly, depending on such
matters as what percentage of the property value that you will be
borrowing, the amount of the loan, the amount of the purchase and which
bank you are borrowing funds from. If you speak to your local Mortgage
Express representative you can quickly ascertain approximate costs for
your particular circumstances.